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Tesla shares fall 4% amid inflation fears and energy shocks after April CPI report

Technical Signals
12 May 2026
Kaustubh Bagalkote
View Source
Bearish
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Tesla stock dropped about 4% following a broader market sell-off triggered by April's Consumer Price Index (CPI) report, which showed inflation rising to 3.8%, higher than expected. The energy sector saw a 3.8% price increase due to geopolitical tensions affecting the Strait of Hormuz, adding pressure on markets. Despite the decline, Tesla remains above key moving averages, though its overbought momentum suggests possible near-term pullbacks. Analysts maintain a Buy rating with an average price target around $431, but traders are watching key resistance at $436.50 and support at $364.00 for the stock's next moves.

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